Brand Equity and Its Dimensionality
We define brand equity as the difference in consumer choice between the focal branded product and an unbranded product given the same level of product features. This definition deals with the comparison of two products that are identical in all respects except brand name (e.g., Samsung product versus no-name product). All consumers have an impression of what Samsung conveys about a product, but they do not have a similar impression about what no-name conveys. Samsung’s brand equity is the extra value embedded in its name, as perceived by the consumer, compared with an otherwise equal product without the name. The difference in con- sumer choice between these two products can be assessed by measuring the intention to buy or a preference for the focal brand in comparison with the no-name counterpart.
According to Aaker (1991, 1996), brand equity is a multidimensional concept. It consists of brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary brand assets. Other researchers identify similar dimensions. Shocker and Weitz (1988) propose brand loyalty and brand associations, and Keller (1993) suggests brand knowledge, comprising brand awareness and brand image. Considering the various suggestions, we recognize perceived quality, brand loyalty, and brand awareness with strong brand associations as common dimensions of brand equity. In summary, high brand equity implies that customers have a lot of positive and strong associations related to the brand, perceive the brand is of high quality, and are loyal to the brand. In our extended model, the dimensions of brand equity increase brand equity because each of them is positively related to brand equity.